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Want to save more money in 2024? Every payday, pay yourself first. Find out how automation can help you stay on track so you reach your savings goals. [[{“value”:”
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Many people struggle with saving money, even if it’s one of their financial goals. If you’re finding it challenging to prioritize saving, you’re not alone. One way to ensure you stay on top of your goals is by paying yourself first. By doing this, you’ll be making savings a top priority.
How do you do this? Every payday, transfer a portion of your paycheck to your savings account. Over time, this money move can transform your savings account balance. To succeed, you’ll want to get into the habit of doing this.
If you sometimes forget to transfer money into your savings account, I have a recommended technique to eliminate forgetfulness. Find out what move to make to ensure you always pay yourself first, even when life gets busy.
Put your savings on autopilot
Here are two common reasons why people don’t save as much money as they would like:
They spend their extra cash before it gets saved.They don’t remember to transfer money to their savings accounts.
If either of these scenarios resonates with you, I recommend one strategy that can make a big difference — automate your savings. Instead of relying on your memory to make manual contributions to your savings account, put your savings on autopilot.
You can set up automatic transfers through your bank’s mobile app or website. It’s easy and free to do. Once you enable automation, money will be automatically transferred from your checking account to your savings account on a set schedule.
Remember how we talked about the importance of paying yourself first earlier? I suggest choosing a contribution schedule that aligns with your pay schedule. If you get paid biweekly, set up your automatic transfers so that money is transferred biweekly on payday. This way, you pay yourself before you spend the money elsewhere.
Automation can be a game changer if you’ve struggled to stay true to your savings goals. You’ll eliminate forgetfulness and save time. While you’re going about your everyday life, your savings account will grow behind the scenes. It’s a win-win move for you and your money.
Altering your spending habits can help
Some people neglect to save because they overspend. While it requires effort, it’s possible to develop new spending habits so you waste less money and end up with more to stash in your high-yield savings account.
One way to make positive changes is to start budgeting. Setting and following spending limits can help you stop overspending. One of the best budgeting apps may help if you struggle with budgeting. Digital tools like this can help you stay motivated and help you learn new habits, as well as identify spending areas where you can painlessly cut back.
Don’t put off saving
Even if you have no savings, it’s not too late to start putting money aside. If you’re delaying saving because you can only contribute a small amount to your savings account, remember that any money saved is a win. Don’t avoid saving because you think your actions won’t make a difference. For additional money management tips, check out our free personal finance resources.
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